Media fights suppression order over mystery emails at ICAC

Kate McClymont, Michaela Whitbourn

Media organisations have joined forces at a corruption inquiry to fight a suppression order over a controversial chain of emails involving a "very well known person" and a Liberal identity.

The emails, headed "Re Carbon Tax", were suppressed at the Independent Commission Against Corruption on Thursday after questions were raised about whether publishing the documents would breach parliamentary privilege.

Robert Newlinds, SC, the barrister for NSW Liberal Senator and former party president Arthur Sinodinos, wrote to the ICAC to alert the commission to the potential breach.

"The letter we wrote simply said that we were somewhat perturbed that there may be a breach by counsel assisting [Geoffrey Watson, SC] and the commission of the federal Parliamentary Privileges Act," Mr Newlinds told the hearing on Thursday afternoon.

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"I don't really want to say out loud what the topic is because the private individual is a very well known person.

"I just don't want this to get out. Can we at least have a suppression order about the debate."

The hearing was closed to the public while the matter was discussed.

On Friday, media organisations including Fairfax Media (the publisher of The Sydney Morning Herald and The Australian Financial Review), the ABC, News Ltd and Channel 9, briefed barrister Sandy Dawson to challenge a suppression order over the emails.

Several journalists had read the emails before they were suppressed.

The emails were tendered as part of a public exhibit on Thursday morning during the ICAC's inquiry into Liberal Party fundraising.

The commission is examining the activities of the federal Free Enterprise Foundation, which is alleged to have been used to "launder" illegal donations and channel them back to the NSW branch of the party.

According to the Parliamentary Privileges Act, "the preparation of a document for purposes of or incidental to" the business of the House of Representatives or any committees may attract parliamentary privilege in court proceedings.

Commissioner Megan Latham said on Thursday the emails were between a "private individual and a member of the Liberal Party".

The commissioner ordered that the emails be suppressed until the matter was clarified. She expressed some doubt about whether parliamentary privilege would apply to the emails.

She said the ICAC would contact the speaker of the House of Representatives, Bronwyn Bishop, and seek a response before the order was re-considered on Monday.

"It may be that they form a view that there is no protection afforded to the documents anyway," Commissioner Latham told Mr Dawson. "Although your clients will be sorry to miss the weekend deadline, can I suggest that...the commission take steps to notify the Speaker of the House of Representatives...and see if we can get an urgent response."

Mr Watson has previously told the inquiry that the NSW Liberal Party subverted the electoral laws by laundering illegal developer donations through the Free Enterprise Foundation.

The ban on developers donating in NSW was introduced in 2009 by then Labor premier Nathan Rees.

The use of the Free Enterprise Foundation to subvert these rules was "a serious breach of the law, and a serious breach of trust with the voters of NSW", Mr Watson has told the commission.

"The letter we wrote simply said that we were somewhat perturbed that there may be a breach by counsel assisting [Geoffrey Watson, SC] and the commission of the federal Parliamentary Privileges Act," Mr Newlinds told the hearing on Thursday afternoon.

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